The Boeing Company Reports Unaudited Consolidated Earnings Results for the Fourth Quarter and Full Year Ended December 31, 2013; Provides Earnings Guidance for the Year 2014
January 29, 2014 at 12:30 pm
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The Boeing Company reported unaudited consolidated earnings results for the fourth quarter and full year ended December 31, 2013. The company reported fourth-quarter revenue of $23.8 billion and core earnings per share (non-GAAP) that increased 29% to $1.88, driven by strong performance across the company's businesses and higher deliveries. Fourth-quarter core operating earnings (non-GAAP) of $1.8 billion includes a $406 million non-cash charge to settle A-12 litigation dating back to 1991, retiring a longstanding risk to the company. Excluding the A-12 charge, fourth-quarter 2013 core operating earnings increased 22% to $2.2 billion and core operating margin increased to 9.4%. Core and GAAP earnings per share include a charge of $0.34 per share related to A-12 partially offset by a benefit of $0.28 per share for a tax regulation change. For the quarter, the company reported earnings from operations of $1.5 billion, earnings before tax of $1.4 billion, net earnings from continuing operations of $1.4 billion or $1.61 per diluted share and net earnings of $1.2 billion or $1.61 per diluted share against earnings from operations of $1.6 billion, earnings before tax of $1.5 billion, net earnings from continuing operations of $0.9 billion or $1.28 per diluted share and net earnings of $0.9 billion or $1.28 per diluted share reported for the same period a year ago. Operating cash flow was $1.3 billion against $4.1 billion a year ago.
For the year, the company reported earnings from operations of $6.5 billion, earnings before tax of $6.2 billion, net earnings from continuing operations of $4.5 billion or $5.96 per diluted share and net earnings of $4.5 billion or $5.96 per diluted share on total revenue of $86.6 billion against earnings from operations of $6.3 billion, earnings before tax of $5.9 billion, net earnings from continuing operations of $3.9 billion or $5.11 per diluted share and net earnings of $3.9 billion or $5.11 per diluted share on total revenue of $81.7 billion reported for the same period a year ago. Net cash provided by operating activities was $8.1 billion against $7.5 billion reported a year ago. Property, plant and equipment additions were $2.1 billion against $1.7 billion a year ago. Non-GAAP core earnings were $7.8 billion or $7.07 per share against $7.1 billion or $5.88 per share a year ago.
Core earnings per share guidance for 2014 is set at between $7.00 and $7.20, while GAAP earnings per share guidance is established at between $6.10 and $6.30. Revenue guidance is between $87.5 and $90.5 billion, including commercial deliveries of between 715 and 725. Operating cash flow before pension contributions is expected to be approximately $7 billion, while operating cash flow guidance is set at approximately $6.25 billion. Boeing's 2014 R&D forecast is approximately $3.2 billion, and capital expenditures for 2014 are expected to be approximately $2.5 billion. Boeing's effective tax rate is expected to be approximately 31% in 2014, which assumes the extension of the research and development tax credit.
The Boeing Company is the worldwide leader in aeronautical construction. Net sales (including intragroup) break down by market as follows:
- commercial aviation (43.5%). In addition to commercial aircraft, the group supplies spare parts and offers technical support, maintenance and engineering services;
- defense, space and security (32%): military aircraft and mobility systems (warplanes, helicopters, and air defense missiles), support services (logistics, engineering, maintenance and training services) and space equipment (satellites, launch pads, etc.).
The remaining sales (24.5%) are from services (logistics and supply management, engineering, maintenance, modification and training services, etc.), and commercial and private aircraft financing as well as aircraft equipment leasing activities.
Net sales are distributed geographically as follows: the United States (58.4%), Europe (13.5%), Asia (12.9%), Middle East (8.5%), Oceania (2.1%), Canada (1.6%), Africa (1.1%) and other (1.9%).
The Boeing Company Reports Unaudited Consolidated Earnings Results for the Fourth Quarter and Full Year Ended December 31, 2013; Provides Earnings Guidance for the Year 2014